Finance dpt and particularly the CFO has a key role to play in the business performance implementation: - Performance Management needs a frame: Process Management - Momentum must be led by top management: Lead by example - All the company need to be aligned: Integrated performance management systems rely on a comprehensive, - Involvement and commitment of People is a key success factor - Integrated set of Key Performance Indicators (KPIs) that manage performance throughout and across all levels of an organization - Continuous improvement by increasing understanding of the core issues driving the performance - Company must be leaner to be stronger and faster

1. Extending Business Performance
Management to all within the
Organization
Mehdi ALAOUI
Nov 2105

2. Business Performance Management
Everything should be made as simple as possible, but not
simpler
Albert Einstein

3. What do we want to address?
Continuously
evolving Context
How do we
address it?
Business Process
Management and
Performance
Define and implement a
strategy
Focus on the people
Leaner: Simpler processes
Complex organisations and
flows
Fierce competition
Demanding customer s &
suppliers
Difficult global economy

4. What are we going to learn
• Performance Management needs a frame: Process Management
• Momentum must be led by top management: Lead by example
• Proactive attitude
• All the company need to be aligned: Integrated performance
management systems rely on a comprehensive,
• Involvement and commitment of People is a key success factor
• Integrated set of Key Performance Indicators (KPIs) that manage
performance throughout and across all levels of an organization
• Continuous improvement by increasing understanding of the core
issues driving the performance
• Company must be leaner to be stronger and faster

5. Agenda
• Implementing a strategy successfully
• Translating a strategy into concrete individual actions
• Reporting for accountability and responsibility
• The evolving role of finance in the new environment

6. • Strategy definition
– High level plan to achieve one
or more goals under conditions
of uncertainty.
– A pattern in a stream of
decisions (Henry Mintzberg)
– Strategy is about shaping the
future (Max McKeown)
– Where to play and how to win,
to maximize long-term value
• Corporate Strategy
– Integrated view of the firm.
– Coordination and consistency
across the functions are
hallmarks of effective strategy.
– functional policies tailored to
each other and to its environment
– Long-term perspective.
We need a Strategy!
Implementing a strategy successfully

7. • A Vision
• Business Priorities
• Strategic
Challenges
Defining a Strategy
Implementing a strategy successfully
The steps :
Strategic Plan: 2035
Tactical plan: 3 year Plan
Operational plan: Budget
Key issues in translating
strategy into action

8. Business Performance Management
• Process by which organizations align their resources, systems
and employees to strategic objectives and priorities
• Organizations need to get the best out of their people if they
are to survive and prosper in an increasingly competitive
world
• The most mature and successful implementations are those in
which BPM is introduced voluntarily by the company to
improve its decision-making and to generate new insights
and understanding that drive performance improvements

9. Business Process Management definition
Business Process Approach
CustomerNEEDS
CustomerSATISFACTION
Define Market needs
Develop Product
Sell Product
Deliver Product
Service Product
Strategic Process
Core Processes
Support Processes
Finance HR EHS Quality Sourcing

10. BPM cycle & Continuous Improvement (6 Sigma)
Define Process
•Process definition & Modelling
•Obtain Client Requirements
•Aligned to Business Strategy
Measure & Execute
•Execute as defined
•Quantify Process Performance
Analyze
•Understand Performance
•Determine optimal improvement
•Establish improvement targets
Improve
•Validate the solution design
•Validate pilot solution
•Implement the improvement
Control
•Confirm the solution
•Standardize the process
Process Ownership
Process Execution & Monitoring
Eficiency &
Efectiveness

11. Strategic Objectives
Strategy Map
Performance Measures &
Targets
Strategic Initiatives
Defining a Strategy
Vision &
Strategy
Financial
“Financial
Performance”
Internal
Business
Process
“Efficiency”
Organizational
Capacity
“Knowledge
and
Innovation”
Customer /
Stakeholder
“Satisfaction”
From R.Kaplan and D. Norton “Using the Balanced Scorecard as Strategic
Management System” – Harvard Business Review 1996
Strategic Planning and Balanced Scorecard

12. Implementing a strategy
BSC
Translating the
Vision
(Clarifying the Vision /
Gaining Consensus)
Feedback and
Leadning
Business Planning
( Setting targets /
Aligining strategic
initiatives / Allocating
ressources /
establishing
milestones)
Communicating
and Linking
(Communicating and
Educating / Setting
goals / Linking
rewards to
performance
measures)
From R.Kaplan and D. Norton “Using the Balanced Scorecard as Strategic
Management System” – Harvard Business Review 1996
Managing Strategy: 4 Processes
BSC
Process KPIs
Operational KPIs

13. Agenda
• Implementing a strategy successfully
• Translating a strategy into concrete individual actions
• Reporting for accountability and responsibility
• The evolving role of finance in the new environment

14. • Delivering value efficiently to the
customer
• Enabling people to lead and
contribute to their fullest potential
– Empower people
– Develop people
• Discovering better ways of working
– Problem solving culture
– Continuous improvement
– Less is More
• Connecting Strategy, goals and
meaningful purposes
– Aligned Organisation
– Less levels
The core idea is to
maximize customer value
while minimizing waste.
Simply, lean means
creating more value for
customers with fewer
resources.
LEAN CONCEPT
Individual Actions

15. • Executing a transformation such as Performance
management requires dividing a large task into
practical iterative steps that achieve measurable
results and build momentum
• Once strategy is defined, once Business objectives
are defined, once BSC is defined, comes the
Objectives define SMART (Stretching, Measurable, Agreed,
Realistic, time bound) Aligned with Business objectives and BSC
Performance cycle
Bonus alignement
From the BSC to individual action
Individual Actions

16. • Communication
• KPI cascaded down to the whole
organisation and in line with daily tasks
• Everyone look in the same direction
The involvement of every player is critical
Individual Actions

17. Agenda
• Implementing a strategy successfully
• Translating a strategy into concrete individual actions
• Reporting for accountability and responsibility
• The evolving role of finance in the new environment

18. • KPIs are the quantifiable performance
measures that make the critical success
factors actionable and understandable.
• They allow the organization to monitor and
communicate performance continuously
against desired results
• Quality / Cost / Delivery
Defining the Key Performance Indicators
Accountability & Responsibility

19. • Personal impact
• An emotional reaction to the vision of change is
normal and should be expected.
• People react differently. Those who resist often
do so out of a conscious or unconscious fear of
loss. Such fears can be overcome by a variety of
methods, including participation in the change
process, communication, counselling, training
and negotiation
• People will embrace change if seriously engaged
in the process
Accountability & Responsibility
Managing the change

20. Agenda
• Implementing a strategy successfully
• Translating a strategy into concrete individual actions
• Reporting for accountability and responsibility
• The evolving role of finance in the new environment

21. • To provide accurate and timely financial information to our internal
and external stakeholders whilst working closely with Management on
financial priorities and challenges
• To be the guardian of rules in ensuring proper financial controls
• To be a business partner for all internal stakeholders
Finance role & mission

22. Supporting Operational Excellence
• Simplify administrative and reporting process
• Standardize Unit/PL/Business Reporting
• Simplify administrative and reporting process
• Identify errors and difficulties in reporting submissions
• Support Business cost reduction programmes
• Increase finance function efficiency
• Cash Focus – support lead time and inventory reduction
initiatives
• Reduce billing lead time
• Engage employees to share and use best practices
• Develop a strong Finance community
Objectives
Simplification
Quality
Cost
Competitiveness
Cash
People
Performance Management within Finance

23. The evolving role of finance in the new
environment
Developing soft skills
• Agreed need and shared vision from top management to each individual
• Personal impact – importance of management the people: accompany –
need people engagement – common goals (no silos)
• Developing capability: process, systems and skills
• Celebrate: transformation takes time, important to identify short term goals
, celebrate and keep momentum
• Finance Director as business partner
Understand strategy
Understand the frame / process
Has a need to simplify
Agile / flexible:
Lead by example and show that finance can be lean

24. • Define and Measure the Company KPIs
• Finance department freed from data gathering and
checking, devoted to Analysis and Decision support
• Timely reports based on metrics that MATTERS
• Lower costs and complexity in the preparation of reports
• A process that encourages continuous improvement
The evolving role of finance in the new
environment
Process Management co-pilot

25. Conclusion

26. Performance measurement and management define the
current and future success of an organization.
Clear understanding among executives, managers and
employees of what’s expected of them
A compensation and reward system based on
performance that advances the strategic objectives
A process that encourages continuous improvement
Managing today’s activities and planning tomorrow’s
opportunities and growth strategies
Conclusion